Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley test bank

         Cash                                                   4,755         Common shares, (3,250 shares)             20,000
         Retained earnings (Jan 1)          8,000         Dividends                                                          3,250
         Other income                                 2,225         Interest expense                                                 250
         Sales revenue                              57,250         Depreciation expense                                   2,850
         PPE (net)                                      34,425         Accounts Receivable                                      5,250
 
Instructions
a)     Calculate total assets.
b)     Calculate total revenue, expenses and net income.
c)     Calculate total liabilities.
d)     Calculate earnings per share.
 
Solution (15 min.)
a)     Total Assets
         Cash                                                                      $  4,755
         A/R                                                                       $  5,250
         PPE                                                                          $34,425
         TOTAL                                                                    $44,430